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numbers estimated from attraction receipts.

The methodology is not perfect, but


can be an important first step in segmenting visitors into major types for marketing
purposes.

Market Segmentation
Geography, including distance traveled and place of origin, is one of the most
widely used forms of visitor market segmentation. It is generally the easiest form of
visitor data to obtain because it requires only one simple question of the visitors, and
can be obtained from hotel and motel registration records (with appropriate privacy
measures). Advertising and promotional campaigns can then be tailored for use in
each of the major places from which visitors and users originate. The second most
important form of data for market segmentation is visitor or user motivation. Though
more difficult to obtain, a lot of research has been done to define the varied motiva-
tion of tourists.

Defining Industries

An industry is defined as a set of businesses that share in the production of a com-


mon product. For example, the auto industry consists of businesses that manufacture,
sell and service automobiles; the gaming industry includes businesses that are associ-
ated with the activity of gambling. A set of businesses must meet three criteria to be
considered an industry:

1. They produce essentially the same product


2. They use essentially the same technology
3. The product output is large enough to warrant data collection and reporting

Tourism is one of the largest service industries in the world. International tourism
expenditures and receipt account for 30 percent of all international trade in services
(2002 data, World Tourism Organization). This definition of tourism includes a large
part of the recreation activities that occur on the planet, especially anything that is
considered an attraction, as well almost all of the hospitality industry (hotels, res-
taurants and related businesses), and a good chunk of the transportation industry
(especially airplanes, intercity buses and trains). However, international definitions
of what constitutes particular sectors is important in determining estimates of their
relative size.
Demand for travel and tourism continues to increase, despite terrorist threats, and
especially as leisure time and economic well being increase in the newly developing
economies of Asia, Latin America, Eastern Europe and elsewhere. In fact, according
to the UNWTO and aircraft manufacturers, such as Airbus and Boeing, the number
of international travelers and installed seats in aircraft are both expected to double
between 2000 and 2020. As a result of growth in the number of aircraft worldwide
and demand for travel the overall distances of flights are predicted to increase, with
the average distance flown growing from 1,437 km in 2002 to 1,516 km in 2022.

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